FNMA Recent activities 11/03/2014 21:00:56 $FNMA
I agree Catbird. Something is going on.
Thank you CatBirdSeat, that seems to make sense. $$fnma,fmcc$$
??????
Reason for CSS Is For Accounting Reasons (From Google Board)
You have to understand what keeps GSE's in conservatorship. Right now full blown Basel is waived in conservatorship.
The focus here is guarantee book, so I will not talk about whole loan and portfolio. That's different and manageable. What's unmanageable is $6.3T in assets & liabilities combined. Basel basically doesn't let GSE's do what banks do to ETFs, ADRs and PLS's.
What is securitization? The trust is created, and the cashlows are redirected from the trust to the securities. In GSE's case the securities are MBS bonds. Basel had a weird clause that basically if the company insures the loans, the loans have to be on the books and marked to market. GSE's have $6.3T of loans. They will be marked to market. How long do you think they will survive outside conservatorship? The liabilities are not marked to market (MBS bonds that are sold). Currently, the workaround is the loans are not marked to market in conservatorship. Basel prevents GSE's from ever leaving conservatorship. They need pre-2008 accounting. That is not happening.
The workaround is creating CSS that will have the securitization trusts not on the books. CSS doesn't insure loans. CSS is pure securitization vehicle. It allows GSE's to free up capital required for securitizations, and claim they insure mortgages. If they just insure loans, not securitize and insure, the accounting for GSE's guarantee book becomes that of an insurance company. The loans get off the book. They are not marked to market. They don't need to waste a lot of capital tied up in securitization. They can claim cash flow from insurance contracts as assets.
One of the reasons GSE's couldn't leave conservatorship was convoluted accounting not created for the GSE's at all. CSS solves the problem, and I also think it solves full faith and credit problem too as CSS is riskless. I don't know how the US will chose to treat them, but Ginnies is a conduit of hiding FHA & VA loans sold from the government books by the riskless Ginnie claims. Ginnie is also pure securitization vehicle.
I'm going to start my own FnF at their respected PPS at $72.50 per share. I'll only keep the float at 2.2mm float.
Would be great if it was FnF, not sure because he says new commitment. He does talk a lot about shareholder cause in this clip and that all shareholders benefit. He also says that they spread the funds out to all their holdings.
http://mobile.bloomberg.com/news/2014-10-13/a...ading.html
...oh now it's got to do with a fart eh...alrighty then...
Interesting
Now in context
Shelby wanted - at the request of banks - to put a capital requirement on F and F to reduce their profit and domination of the market the banks wanted
Dems enjoyed the continued middle class focus and did not want F and F to have to bear this added cost
Not saying who is or was right - but do understand why Shelby wanted a capital requirement on F and F and it was not cause he liked the agency smell
...all of a sudden you UNDERSTAND everything...really?!
re Glass Steagall going bye bye
Lets thank CITI SMITH BARNEY That broke that law first
Lets thank the all knowing Greenspan - who pushed for a free market to police the behavior of banks !!!
Do remember Glass Steagall was supported by the DEM congress and was started by FDR
The take down was not Clinton but the REP house and Senate on taht one
The CSP Will Not Fully Replace the Enterprises’ Back Office Securitization Systems
According to FHFA, when it is built, the CSP will be a separate IT system composed of five
modules that will perform some of the Enterprises’ back office securitization functions
described above more flexibly and efficiently.
That is, the CSP will enable the Enterprises
to add functionality without having to rely on expensive manual changes, particularly at
Fannie Mae. If executed as intended, the CSP could permit the Enterprises to reduce
alteration and maintenance costs, test a specific module without affecting other modules,
accommodate new products, and create accessibility for other market participants.
According to the team developing the CSP,
it will be built in a modular fashion utilizing
standardized securitization services and
interfaces. FHFA anticipates that these
design features, among others, will allow the
CSP to adapt to policy changes and emerging
standards and technologies. For example, if
FHFA or the Enterprises decide to provide
additional disclosures to MBS investors, the issuance support, disclosure, master servicing
operations, and bond administration modules should support that change without substantial
additional programming.
While the CSP is intended to produce these benefits, it will not replace the Enterprises’
current back office systems entirely. The Enterprises will have to continue to maintain and
use some of their existing systems for the following three reasons:
1. First, it appears that certain existing single-family securitizations may not be
transferred to the CSP because of the complexity of designing a system capable of
servicing both past and future products.
2. Second, the CSP will only support single-family securitization. The Enterprises will
continue to use their existing systems for multifamily mortgage securitizations. There
are no plans for the CSP to accommodate multifamily mortgage securitizations.
3. Third, the Enterprises have some back office systems that will not be part of the CSP.
For example, the CSP will not support master servicing functions for non-performing
loans. Those duties will remain with the Enterprises.
Do you suppose he target fnf?
Excellent piece
Reminding us that DeMarco is for wind down
As is the Republican House
As will be the Republican Senate
Watch the fun as its a VETO by BO that saves our ask
GMAC that went out of biz due to its right turn to Real Estate?
Seriously ?
For all of post WWII history the REP party has hated Fannie
The last session saw bill after bill to kill F and F
But some keep thinking that somehow REPS will view this in a clear view for the first time in history
Should those who believe in property rights be pro GSE (if only compensation for the taking !!!)
Sure they should
But they have never so shown to be friends of the commie socialist FDR agency that helped Americans to 50 Million homes and the 30 year mortgage.
Everyone must understand that the REPs (traditional REPS) have it in their DNA to kill the AGENCY called Fannie Mae as it operates in private but in essence is the GOV AGENCY that FDR created for the middle class
Com on man, you can do better then "Coach", isn't that a bus
Just hold awhile longer and upgrade to plane or Harley...
The current Administration is on the wrong side of the law and history on the issue of the GSEs
Again - I expect the AIG suit to go down in a blaze of the right of GOV to do tons of stuff when the fire is burning (think national security - or ability of President to fight a war or something like it for 30-60 days with no votes)
But with the GSEs the THIRD AMENDMENT is neither legal nor covered by HERA
One can not have a one party contract as I view by then that the Treasury and the FHFA and the CONSERVATOR )(DEmarco appointed by Bush?) were all one party --- no second party
No consideration
No eminent domain compensation for a taking
And the difference between AIG and GSEs is the Third Amendment which was entered into during the CALM not the FIRE
GOV has right to exercise warrants (if ownership of equity is deemed constiturional)
Gov has right to debtor in possession level of interest - 10%
GOV has no right anywhere in any law to put a company in Conservatorship into receiership right before it comes into 150 Billion dollars
navy
but if BO does not veto legislation that is far right - would he not be a DINO? - Democrat in Name Only
Indeed I suspect that BO will agree to Corporate Tax deals that the majority of DEMS will vote no on
Indeed I suspect that BO will agree to a free trade agends that the majority of DEMS will vote no on
And if MM has a pair - BO will vote dollar for dollar on increases on highly rich tax and reduction in Social COLA and Medicare etc ---- the great bargain that Boehner could not get enough REPS in the house to agree to
Why do you make fun ?
We have been here many times before with the congress one way and the WH the other and that means tons of vetos - by definition and expectation as each party plays to its base
Fannie Mae Releases September 2014 Monthly Summary "PR Newswire (US)" - 10/31/2014 4:01:00 PM
Outlook for U.S. Economic Growth Still Solid Even as Global Growth Slows "PR Newswire (US)" - 10/23/2014 9:00:00 AM
Walker & Dunlop Originates $108M Fannie Mae MHC Loan "PR Newswire (US)" - 10/21/2014 4:43:00 PM
Successful Crohn’s Disease Drug Trial Send Celgene Shares Soaring and Fannie Mae Jumps on Shareholder Lawsuit "InvestorsHub NewsWire" - 10/21/2014
Fannie Mae Prices $1.32 Billion Multifamily DUS REMIC (FNA 2014-M12) Under Its Fannie Mae GeMS™ Program "PR Newswire (US)" - 10/17/2014 9:00:00 AM
Market Swoon Bruises Some Hedge Funds--Update 1 "Dow Jones News" - 10/14/2014 5:54:46 PM
ALTITRADE PARTNERS™ SAYS A KEY-REVERSAL DAY COULD HAPPEN THIS WEEK "InvestorsHub NewsWire" - 10/14/2014 6:00:00 AM
Americans' Attitudes on Housing Return to Positive Trend "PR Newswire (US)" - 10/7/2014 9:00:00 AM
Fannie Mae Releases August 2014 Monthly Summary "PR Newswire (US)" - 9/30/2014 4:01:00 PM
Near-Term Growth Outlook Remains Intact as Economy Continues to Accelerate "PR Newswire (US)" - 9/23/2014 9:00:00 AM
Minority Borrowers Feel Mortgage Pinch--Update 2 "Dow Jones News" - 9/22/2014 6:54:36 PM
Mortgage Lender Sentiment Survey Results Show Large Lenders Expect Credit Standards to Ease During Next Three Months "PR Newswire (US)" - 9/17/2014 9:00:00 AM
Fannie Mae Prices $986 Million Multifamily DUS REMIC (FNA 2014-M10) Under Its Fannie Mae GeMS™ Program "PR Newswire (US)" - 9/16/2014 9:09:00 AM
HSBC Confirms FHFA Settlement, Will Pay $550 Million "Dow Jones News" - 9/12/2014 5:40:38 PM
Consumer Housing Sentiment Loses Momentum as Income Growth Remains Stagnant "PR Newswire (US)" - 9/8/2014 9:00:00 AM
Fannie Mae Releases July 2014 Monthly Summary "PR Newswire (US)" - 8/29/2014 4:01:00 PM
Goldman Close to Settling FHFA Lawsuit for Over $1 Billion -- Update "Dow Jones News" - 8/22/2014 5:05:39 PM
2014 Economic Growth Expectations Get Boost from Second Quarter Rebound "PR Newswire (US)" - 8/18/2014 9:03:00 AM
Fannie Mae Prices $950 Million Multifamily DUS REMIC (FNA 2014-M9) Under Its Fannie Mae GeMS™ Program "PR Newswire (US)" - 8/15/2014 3:36:00 PM
Common Shareholders of Fannie & Freddie, Including Pershing Square & Three Individuals, File Suit against United States Gover... "Business Wire" - 8/14/2014 8:39:00 PM
NEW CONCEPT LAUNCHES TODAY FOR MICRO-CAP STOCK TRADERS. RECEIVE PAID PRE-PROMO STOCK ALERTS FOR FREE. "InvestorsHub NewsWire" - 8/14/2014 12:29:20 PM
Fannie Mae Releases June 2014 Monthly Summary "PR Newswire (US)" - 7/31/2014 4:01:00 PM
Fannie Mae Releases New Mortgage Lender Sentiment Survey Results "PR Newswire (US)" - 7/24/2014 9:00:00 AM
Economic Growth Expected to Strengthen During Second Half of 2014, But Not Enough to Save the Year "PR Newswire (US)" - 7/23/2014 9:00:00 AM
I agree Catbird. Something is going on.
Thank you CatBirdSeat, that seems to make sense. $$fnma,fmcc$$
??????
Reason for CSS Is For Accounting Reasons (From Google Board)
You have to understand what keeps GSE's in conservatorship. Right now full blown Basel is waived in conservatorship.
The focus here is guarantee book, so I will not talk about whole loan and portfolio. That's different and manageable. What's unmanageable is $6.3T in assets & liabilities combined. Basel basically doesn't let GSE's do what banks do to ETFs, ADRs and PLS's.
What is securitization? The trust is created, and the cashlows are redirected from the trust to the securities. In GSE's case the securities are MBS bonds. Basel had a weird clause that basically if the company insures the loans, the loans have to be on the books and marked to market. GSE's have $6.3T of loans. They will be marked to market. How long do you think they will survive outside conservatorship? The liabilities are not marked to market (MBS bonds that are sold). Currently, the workaround is the loans are not marked to market in conservatorship. Basel prevents GSE's from ever leaving conservatorship. They need pre-2008 accounting. That is not happening.
The workaround is creating CSS that will have the securitization trusts not on the books. CSS doesn't insure loans. CSS is pure securitization vehicle. It allows GSE's to free up capital required for securitizations, and claim they insure mortgages. If they just insure loans, not securitize and insure, the accounting for GSE's guarantee book becomes that of an insurance company. The loans get off the book. They are not marked to market. They don't need to waste a lot of capital tied up in securitization. They can claim cash flow from insurance contracts as assets.
One of the reasons GSE's couldn't leave conservatorship was convoluted accounting not created for the GSE's at all. CSS solves the problem, and I also think it solves full faith and credit problem too as CSS is riskless. I don't know how the US will chose to treat them, but Ginnies is a conduit of hiding FHA & VA loans sold from the government books by the riskless Ginnie claims. Ginnie is also pure securitization vehicle.
I'm going to start my own FnF at their respected PPS at $72.50 per share. I'll only keep the float at 2.2mm float.
Would be great if it was FnF, not sure because he says new commitment. He does talk a lot about shareholder cause in this clip and that all shareholders benefit. He also says that they spread the funds out to all their holdings.
http://mobile.bloomberg.com/news/2014-10-13/a...ading.html
...oh now it's got to do with a fart eh...alrighty then...
Interesting
Now in context
Shelby wanted - at the request of banks - to put a capital requirement on F and F to reduce their profit and domination of the market the banks wanted
Dems enjoyed the continued middle class focus and did not want F and F to have to bear this added cost
Not saying who is or was right - but do understand why Shelby wanted a capital requirement on F and F and it was not cause he liked the agency smell
...all of a sudden you UNDERSTAND everything...really?!
re Glass Steagall going bye bye
Lets thank CITI SMITH BARNEY That broke that law first
Lets thank the all knowing Greenspan - who pushed for a free market to police the behavior of banks !!!
Do remember Glass Steagall was supported by the DEM congress and was started by FDR
The take down was not Clinton but the REP house and Senate on taht one
The CSP Will Not Fully Replace the Enterprises’ Back Office Securitization Systems
According to FHFA, when it is built, the CSP will be a separate IT system composed of five
modules that will perform some of the Enterprises’ back office securitization functions
described above more flexibly and efficiently.
That is, the CSP will enable the Enterprises
to add functionality without having to rely on expensive manual changes, particularly at
Fannie Mae. If executed as intended, the CSP could permit the Enterprises to reduce
alteration and maintenance costs, test a specific module without affecting other modules,
accommodate new products, and create accessibility for other market participants.
According to the team developing the CSP,
it will be built in a modular fashion utilizing
standardized securitization services and
interfaces. FHFA anticipates that these
design features, among others, will allow the
CSP to adapt to policy changes and emerging
standards and technologies. For example, if
FHFA or the Enterprises decide to provide
additional disclosures to MBS investors, the issuance support, disclosure, master servicing
operations, and bond administration modules should support that change without substantial
additional programming.
While the CSP is intended to produce these benefits, it will not replace the Enterprises’
current back office systems entirely. The Enterprises will have to continue to maintain and
use some of their existing systems for the following three reasons:
1. First, it appears that certain existing single-family securitizations may not be
transferred to the CSP because of the complexity of designing a system capable of
servicing both past and future products.
2. Second, the CSP will only support single-family securitization. The Enterprises will
continue to use their existing systems for multifamily mortgage securitizations. There
are no plans for the CSP to accommodate multifamily mortgage securitizations.
3. Third, the Enterprises have some back office systems that will not be part of the CSP.
For example, the CSP will not support master servicing functions for non-performing
loans. Those duties will remain with the Enterprises.
Do you suppose he target fnf?
Excellent piece
Reminding us that DeMarco is for wind down
As is the Republican House
As will be the Republican Senate
Watch the fun as its a VETO by BO that saves our ask
GMAC that went out of biz due to its right turn to Real Estate?
Seriously ?
For all of post WWII history the REP party has hated Fannie
The last session saw bill after bill to kill F and F
But some keep thinking that somehow REPS will view this in a clear view for the first time in history
Should those who believe in property rights be pro GSE (if only compensation for the taking !!!)
Sure they should
But they have never so shown to be friends of the commie socialist FDR agency that helped Americans to 50 Million homes and the 30 year mortgage.
Everyone must understand that the REPs (traditional REPS) have it in their DNA to kill the AGENCY called Fannie Mae as it operates in private but in essence is the GOV AGENCY that FDR created for the middle class
Com on man, you can do better then "Coach", isn't that a bus
Just hold awhile longer and upgrade to plane or Harley...
The current Administration is on the wrong side of the law and history on the issue of the GSEs
Again - I expect the AIG suit to go down in a blaze of the right of GOV to do tons of stuff when the fire is burning (think national security - or ability of President to fight a war or something like it for 30-60 days with no votes)
But with the GSEs the THIRD AMENDMENT is neither legal nor covered by HERA
One can not have a one party contract as I view by then that the Treasury and the FHFA and the CONSERVATOR )(DEmarco appointed by Bush?) were all one party --- no second party
No consideration
No eminent domain compensation for a taking
And the difference between AIG and GSEs is the Third Amendment which was entered into during the CALM not the FIRE
GOV has right to exercise warrants (if ownership of equity is deemed constiturional)
Gov has right to debtor in possession level of interest - 10%
GOV has no right anywhere in any law to put a company in Conservatorship into receiership right before it comes into 150 Billion dollars
navy
but if BO does not veto legislation that is far right - would he not be a DINO? - Democrat in Name Only
Indeed I suspect that BO will agree to Corporate Tax deals that the majority of DEMS will vote no on
Indeed I suspect that BO will agree to a free trade agends that the majority of DEMS will vote no on
And if MM has a pair - BO will vote dollar for dollar on increases on highly rich tax and reduction in Social COLA and Medicare etc ---- the great bargain that Boehner could not get enough REPS in the house to agree to
Why do you make fun ?
We have been here many times before with the congress one way and the WH the other and that means tons of vetos - by definition and expectation as each party plays to its base
Fannie Mae Releases September 2014 Monthly Summary "PR Newswire (US)" - 10/31/2014 4:01:00 PM
Outlook for U.S. Economic Growth Still Solid Even as Global Growth Slows "PR Newswire (US)" - 10/23/2014 9:00:00 AM
Walker & Dunlop Originates $108M Fannie Mae MHC Loan "PR Newswire (US)" - 10/21/2014 4:43:00 PM
Successful Crohn’s Disease Drug Trial Send Celgene Shares Soaring and Fannie Mae Jumps on Shareholder Lawsuit "InvestorsHub NewsWire" - 10/21/2014
Fannie Mae Prices $1.32 Billion Multifamily DUS REMIC (FNA 2014-M12) Under Its Fannie Mae GeMS™ Program "PR Newswire (US)" - 10/17/2014 9:00:00 AM
Market Swoon Bruises Some Hedge Funds--Update 1 "Dow Jones News" - 10/14/2014 5:54:46 PM
ALTITRADE PARTNERS™ SAYS A KEY-REVERSAL DAY COULD HAPPEN THIS WEEK "InvestorsHub NewsWire" - 10/14/2014 6:00:00 AM
Americans' Attitudes on Housing Return to Positive Trend "PR Newswire (US)" - 10/7/2014 9:00:00 AM
Fannie Mae Releases August 2014 Monthly Summary "PR Newswire (US)" - 9/30/2014 4:01:00 PM
Near-Term Growth Outlook Remains Intact as Economy Continues to Accelerate "PR Newswire (US)" - 9/23/2014 9:00:00 AM
Minority Borrowers Feel Mortgage Pinch--Update 2 "Dow Jones News" - 9/22/2014 6:54:36 PM
Mortgage Lender Sentiment Survey Results Show Large Lenders Expect Credit Standards to Ease During Next Three Months "PR Newswire (US)" - 9/17/2014 9:00:00 AM
Fannie Mae Prices $986 Million Multifamily DUS REMIC (FNA 2014-M10) Under Its Fannie Mae GeMS™ Program "PR Newswire (US)" - 9/16/2014 9:09:00 AM
HSBC Confirms FHFA Settlement, Will Pay $550 Million "Dow Jones News" - 9/12/2014 5:40:38 PM
Consumer Housing Sentiment Loses Momentum as Income Growth Remains Stagnant "PR Newswire (US)" - 9/8/2014 9:00:00 AM
Fannie Mae Releases July 2014 Monthly Summary "PR Newswire (US)" - 8/29/2014 4:01:00 PM
Goldman Close to Settling FHFA Lawsuit for Over $1 Billion -- Update "Dow Jones News" - 8/22/2014 5:05:39 PM
2014 Economic Growth Expectations Get Boost from Second Quarter Rebound "PR Newswire (US)" - 8/18/2014 9:03:00 AM
Fannie Mae Prices $950 Million Multifamily DUS REMIC (FNA 2014-M9) Under Its Fannie Mae GeMS™ Program "PR Newswire (US)" - 8/15/2014 3:36:00 PM
Common Shareholders of Fannie & Freddie, Including Pershing Square & Three Individuals, File Suit against United States Gover... "Business Wire" - 8/14/2014 8:39:00 PM
NEW CONCEPT LAUNCHES TODAY FOR MICRO-CAP STOCK TRADERS. RECEIVE PAID PRE-PROMO STOCK ALERTS FOR FREE. "InvestorsHub NewsWire" - 8/14/2014 12:29:20 PM
Fannie Mae Releases June 2014 Monthly Summary "PR Newswire (US)" - 7/31/2014 4:01:00 PM
Fannie Mae Releases New Mortgage Lender Sentiment Survey Results "PR Newswire (US)" - 7/24/2014 9:00:00 AM
Economic Growth Expected to Strengthen During Second Half of 2014, But Not Enough to Save the Year "PR Newswire (US)" - 7/23/2014 9:00:00 AM
